Engr. Farouk Ahmed, Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA has revealed that the Petroleum Industry Act(PIA) is an enabler of investment in Nigeria’s midstream and downstream natural gas infrastructure including pipelines and storage and export facilities.
Engr. Farouk, the Authority Chief Executive(ACE) made this known on Monday in a chat with EnergyDay, at the 2022 Oil Trading & Logistics, OTL Africa Downstream Week in Lagos.
According to him, the PIA has paved the way for Nigeria to develop its natural gas infrastructure both in the upstream and the downstream sector.
He noted that the new industry act is a catalyst to the attainment of the Nigerian Government’s Decade of Gas Initiative.
The ACE however noted that the country needed to focus more on optimising its abundant gas reserve. This according to him, can be achieved when both the government and private sector strategically collaborate to fully harness the country’s gas potential.
He said, “The PIA has opened up opportunities for foreign direct investment to be pooled into developing gas infrastructures.
”The role of natural gas in reducing the country’s energy deficit and establishment of vibrant industries in a more sustainable and environmentally friendly way is critical.
“Nigeria has gas in abundance, around 202 trillion cubic feet of proven gas reserves and about 600 trillion cubic feet of unproven reserves. Harnessing these vast gas resources, and on time too, is key in achieving the energy transition plan.
“What we should be talking about is a collaboration between all the stakeholders. The industry is now open for collaboration.
Speaking about the Government’s plans towards energy transition, the ACE said, the country’s focus is to develop the gas first, before talking about transiting to other sources of energy.
“We have natural resources that needed to be fully harnessed.
“It is when we develop the natural gas in our reserves, while also building on infrastructure, that we can then be talking about gas to power, gas to industries and CNG-enabled vehicles.
Speaking earlier on the panel session with the theme: Regulating Downstream Energy Transition in Dynamic Times, at the 2022 OTL Africa Downstream Week in Lagos.